Agreement signed for establishment of capital market in Ethiopia

Addis Ababa, May 18, 2022 (FBC) – The Ethiopian Ministry of Finance, the Ethiopian Investment Holdings (EIH), and FSD Africa today signed a cooperation agreement to establish Ethiopian Securities Exchange (ESX) which is the milestone for the realization of a capital market.

When Prime Minister Abiy Ahmed came to power in 2018, the country was opening up more, seeking to pursue economic reforms and establish a stock exchange governing body.

Ethiopia is among the biggest five economies in sub-Saharan Africa and is the second-largest in terms of population; yet, it does not have a stock exchange. Now, the establishment of the ESX would held Ethiopia have a functioning exchange, which will make it the 30th exchange on the continent.

Through the signed agreement, FSD Africa will fund almost all aspects to ensure a functioning exchange. H. E Ato Ahmed Shide, Minister in the Ministry of Finance, said:

“The establishment of a securities exchange, the first in our nation’s history, through such a public-private partnership will usher a new era for the Ethiopian financial industry and the economy as a whole. Today’s cooperation agreement between the Ministry of Finance, EIH, and FSD Africa is a first concrete step towards realizing our vision.” He added.

In the late 1950s, there were attempts to reestablish a capital market, but the efforts didn’t last.